The housing market is booming right now. Maybe you tried to get in on it, but were turned down for a loan. Don’t get mad…get educated!

Here’s what might be working against you:

Employment. You need to show evidence of steady employment and income, typically for two years, and there shouldn’t be any indication that your employment is going to go south. If you’re self-employed they’ll want to see good numbers on your last two years of company returns as well.

Credit score. The average score late last year was in the mid-700s for a conventional loan. Rates for FHA and VA loans were lower than that but still pretty steep. If the two of you are trying to qualify—you both need a strong score. Also, even if you’re on a great track again after a bankruptcy or foreclosure, lenders will require a 2-4 year waiting period in the case of bankruptcies and up to 7 years following a foreclosure.

Debt. Lenders follow two rules of thumb when they try to predict if you’ll be able to make your payments. They don’t want to see you spend more than 30% of your gross income on housing costs (e.g., mortgage, taxes, home-owners insurance, etc.) and more than 40% of your gross income on total debt (all of those home-related payments plus credit cards and other loans).

Down payment. Conventional lenders require a 5% down payment; the FHA only asks 3.5%. As you save to reach these levels, remember that there will be other costs you’ll have to pay related to the home purchase—inspection, appraisal, etc.

So, if you were turned down, I recommend you work hard to fix your credit, pay down your debts, and save, save, save!

What is it about the holidays and families? It’s a time to catch up, maybe learn a little more about each other than we’d like, and our generosity is in full bloom. The other day, a friend shared with me that at a family reunion last month, her favorite cousin asked if she’d be willing to co-sign a loan to help him and his wife get into a new house.

She was surprised, to say the least, and she had to think fast to put him off so she could figure out how to respond. I couldn’t tell her what to do, but here was my advice.

Co-signing a loan is just like getting your own loan. That means your credit will be on the line as much as the other person’s.

Your credit report will be pulled. Every time that happens, your score goes down just a little.

Your credit will really be hit if the borrower pays late or misses a payment. You are equally responsible for the payments—and the lender will come after you.

If you need your own loan down the line, having this co-signed loan hanging out there will work against you.

If you decide to go ahead with it, don’t co-sign for any more than you can afford to fully pay back yourself. In order to make sure payments are made on time, you can always ask that the invoices be sent directly to you for payment and have your relative pay you back.

Beyond the financial side of things, remember that families can be, and have been, torn apart by financial issues…like loan co-signing.

I had a great holiday and I hope you did too! Now real life sets in again and if nothing else does, the holiday bills and January credit card statements will sober us up real quick!

Continuing along the theme of last week’s blog, let’s talk a little more about 2013 resolutions for good financial health. A lot of it really all comes down to preparing for a rainy day and controlling spending impulses.

A good rule of thumb for a rainy day fund is to have cash equal to three to four times your monthly living expenses. Put money into this account every month so there will be enough to cover unexpected major repairs, medical emergencies, and even a temporary loss of income. Did I mention this could also help you fulfill your New Year’s resolution of sleeping better at night?

If you need to use credit cards to cover normal monthly expenses…well just stop that! Easier said than done I know, but break this cycle now and pick one expense you will do without. In two weeks add another. Keep going until your monthly budget is balanced.

Automate your finances when possible. It’s easy to set up automatic deposits to build your rainy day fund, college fund, or retirement program. On the other side, set up auto payments for utilities from your checking account (be sure to keep track of them) so you can avoid late fees and save a stamp (hey, it all adds up!).

Most important, write a budget and monitor it throughout the month. The more detailed the better so that you can easily identify cost cutting opportunities and track your victories!

Have you ever stuck with a New Year’s resolution for a whole year or more? Hopefully if you went that long, it’s a part of you and your life forever! Few people can make that claim though. Here are some tips for making personal finance resolutions for 2013:

Be specific. One popular resolution is to “get out of debt.” That’s a great goal but it requires incremental steps and changes in behavior—each one can be a great goal by itself. Pick 2-3 of these achievable steps that move you down that debt reduction path. For example, resolve to pay off your highest interest credit card or the one with the lowest balance by July 1—then move onto the next card.

If your goal is to “save more,” get specific! Set up an automatic deposit from your paycheck or increase your automatic 401(k) contribution by ½ percentage point. There, that was easy!

Track your progress. Ideally, make a bar chart or other visual reminder of your goal and your progress. Put it where you’ll see it daily.

Find an accountability partner. You know how it’s easier to get to the gym regularly if you have a workout partner who expects you to show up? It’s the same with financial goals. Share your goals with someone you trust and give them permission to call you out if they see you slip up.

And if you do slip up, don’t take that as a free pass to throw out the goal. Breaking bad habits and reinforcing new ones is an ongoing process. Forgive yourself and pick up that ball again!

You’ve paid thousands of dollars for your timeshare and you’re probably shelling out annual fees on top of that. Whether or not that purchase was a good decision at the time, what if you can’t afford to continue making payments?

First, try to sell it back to the timeshare company. It’s worth a phone call or a letter, but these companies typically don’t take owners off the hook.

Your best bet is to sell it on the Internet. Timeshare User’s Group (Tug2.net) and eBay are two popular options. Read more…

For some, a second job is an ongoing necessity. For others, it’s a temporary situation in order to achieve a goal, like saving for a major purchase or paying off a debt. Whatever the reason, it’s a major commitment of time and energy. You might want to check first to see if you can work overtime or take on additional responsibilities at your primary job in order to earn that additional cash.

Whatever you do, don’t jeopardize your primary job. Companies may have a policy against taking a second job, but even if your employer doesn’t prohibit moonlighting, you might want to tell your supervisor.

Here are a few common tax issues to watch out for:

If you earn tips in your second job, remember that they are taxable. You must report tips of $20 or more to your employer by the 10th of each month. IRS Form 4070A can help you keep track.

If you’re an independent contractor, you’ll need to manage your own tax withholding and payments. Your clients should mail you a 1099 Form after the end of the year that tells how much they paid you.

If you expect to earn more than $1,000, you must make quarterly estimated tax payments that are due the 15th of the month after the end of each quarter.

Whether a second job is necessary to get by, pay off debts, or save for future needs, be disciplined, have a plan, and obey the law!

So many homes for sale and so many people who can’t qualify to buy… Is a rent-to-own agreement a good option?

In these arrangements, the hopeful buyer leases the home for a defined period after which he or she makes the purchase. Throughout the rental period the renter/buyer pays an extra amount which, at the end of the lease, can be used towards a down payment or closing costs.

Win-Win?

In theory, yes. In a slow housing market, the owner gets a paying tenant (who has a stake in maintaining the property) and a pretty good prospect of an ultimate sale. The renter/buyer gets into the house and has the opportunity to improve his or her credit-worthiness.

The big but…

If the renter changes his or her mind about buying at the end of the lease period, those extra payments might be forfeited. And, for the seller, if the market improves during the lease period, the price locked in previously may prove to be a bad deal.

There are other possible pitfalls, so both parties should have an attorney clearly explain the terms of the contract and the inherent risks.

Are your eyeing your 401(k) or IRA because you’re in a financial jam? That might be the answer, but let’s take a closer look.Accessing your 401(k)
If you’re at least 55 and leave your job, you can take money from your 401(k) without getting hit with the 10% penalty that’s normally charged if you’re 59 ½ or younger.

If you’re under 55, you could take out a loan against your 401(k). Remember, you’ll be paying yourself back, with interest, with after-tax dollars, so it’s still not an ideal solution.

There are a few rules for these 401(k) loans:

They can’t exceed 50 percent of your account balance.

They have to be repaid within five years (fifteen years if it’s for a down payment on a house).

If you lose or leave your job, the entire outstanding balance is due immediately—otherwise it will be treated as a taxable, penalized distribution.

Accessing your IRAYou can make a penalty free IRA withdrawal if:

You’re a first time homebuyer and you use the money for a down payment or to build or rebuild your home. (First-time home buyers are people who have not owned a home for at least two years.)

The funds are used for qualified education-related expenses. (This doesn’t include student loans!)

The money is used to pay for medical insurance for yourself and your dependents and you’ve received unemployment compensation for 12 consecutive weeks.

Tapping these accounts will have an impact on the funds available to support your retirement so weigh the pluses and minuses. You don’t want to turn a current jam into a future financial catastrophe!

As a young immigrant to this country, I faced many hardships and know first hand how poor money choices can take a toll on you. These tough times ignited my desire to succeed and build a fulfilling career that allowed me to empower people with financial knowledge. With this in mind, I’m excited to start this financial blog with the Denver Post. Twice a week I will blog on all things money, to help you feel more confident and in control of your finances. I look forward to breaking down the financial headlines, helping your discern what’s relevant and what’s not.

Just about any news can throw the stock market into a tail spin. Let me kick start our blog with a topic that I’m frequently asked about: “How do I manage my investments in shaky times?”

When the markets are volatile, people feel stuck in a dilemma; do I cash out and run for safety or do I stay the course and stick to the fundamentals. Yes, getting out of the stock market reduces the risk of losing your money, but you expose yourself to bigger losses by selling at the wrong time. If you put that money into a savings account yielding less than 1 percent interest, that’s not going to get you ahead.

Business is personal. And it impacts nearly every aspect of our daily lives. From keeping a household budget to planning for retirement, to getting (and keeping) a job or just putting up with annoying guy in the next cubicle — we've got a lot on our minds, and Personal Interest wants to help you sort it all out. We're bringing together the Denver Post $mart Editor with variety of experts from the local business community. We've asked them to offer tips, advice and general observations aimed at making the business of everyday life a bit easier to manager. Note: The bloggers were selected for their expertise, but their opinions are solely their own. While many operate their own businesses or consulting firms, we are not endorsing or advocating their businesses.